SAO PAULO, May 14 (Reuters) - Brazilian state-run development bank BNDES on Monday posted an increase in profits in the first quarter as it reversed loan-loss provisions and sold shares in Petroleo Brasileiro SA.

BNDES reported net income of 2.06 billion reais ($56.98 billion) for the quarter, more than five times its year-ago profit of 373 million reais.

The Rio de Janeiro-based bank posted gains of 831 million reais from partial sales of its stakes in portfolio companies. Most of it, BNDES officials told a news conference, came from Petrobras. BNDES’ stake in Petrobras fell to 15.98 percent from 16.54 percent in the quarter.